MutualFunds.com provides weekly information about any material impact on the mutual funds industry due to major economic and corporate events around the world. In addition, performance statistics on the top funds and fund categories are also provided.
- U.S. equities were up for the second week of 2018.
- The best-performing fund for 2018 on a year-to-date basis is the Leland Thomson Reuters Venture Capital Index Fund (LDVAX).
- China Equities is the best-performing mutual funds subcategory based on the rolling-month returns.
- Make sure to check out the previous edition of the Weekly Roundup to keep track of changing trends in the mutual funds space.
U.S. Equities – U.S. equity markets all showed gains in the second week of 2018, with the Dow Jones Industrial Average increasing 2.01%, to close at 25,803 and is up 4.39% on a year-to-date basis. The S&P 500 also had an increase of 1.57% for the week to close at 2,786 and is up 4.21%. The NASDAQ Composite was also up 1.74% and closed at 7,261. NASDAQ is the best-returning index among most major indices on a year-to-date basis and is up 5.18%.
The industrials sector was this week’s top-performing sector, up 3.24%. This sector consists of companies like Boeing Co (NYSE:BA), which was up 5.68% for the week and up 14.07% year-to-date.
International Equities – International markets were also up this week, with the exception of the the Nikkei. MSCI Developed Market Index gained 1.20%, to close at 2,126. The MSCI Emerging Index had an increase of 0.61%, to close at 1,208. However, Japan’s Nikkei 225 fell this week by 0.26% and closed at 23,654.
Commodities – The commodity sector was up with the exception of copper. Crude oil increased by $2.86 per barrel to close at $64.30. The price of gold increased $13 per troy ounce to close at $1,333. Copper, however, declined and fell slightly by $0.01 to close at $3.22.
Taxable Bonds – Treasury yields all gained this week with the 2-year Treasury gaining 4 bps to yield 2.00%. The 10-year Treasury yield increased 8 bps, while the 30-year Treasury yield increased 4 bps and now yields 2.85%.
Municipal Bonds – Municipal yields all saw large increases with the 2-year AAA-rated bonds gaining 2 bps to now yield 1.59%. The 10-year AAA-rated bonds saw an increase of 10 bps, while the 30-year AAA-rated bonds grew 14 bps to yield 2.79%. Municipal bond funds saw a huge inflow of $1.042 billion in assets under management. The largest credit spread for the five-year securities increased to 60 bps for the week.
Be sure to read our important tips on how to invest in the right commodity-based mutual fund.
Explore our Mutual Funds Education section to learn more about important mutual funds concepts.
Performance Snapshot: Top Fund Category
The following table provides a list of the top-performing mutual fund subcategories for the previous week within the broader categories of the industry. In each of these subcategories, we have listed the top mutual funds based on the one-month return generated as of January 12, 2018.
|Category||Top Subcategory||MTD Subcategory Return (%)||Top Subcategory Performer||Top Subcategory Performer||MTD Fund Return (%)||Performance Rationale|
|U.S. Equity Fund||Small Growth Equities||5.91%||Delaware Small Cap Growth Institutional||DSGGX||12.33%||The fund's largest holding is Collegium Pharmaceutical Inc. (NASDAQ: COLL), which is up over 17% over the last week.|
|International Equity||China Equities||9.58%||Matthews China Instl||MICFX||13.37%||The fund's largest holding is Tencent Holdings Ltd ADR (TECHY), which is up over 9.6% YTD.|
|Commodities||Broad Basket||6.27%||AQR Risk-Balanced Commodities Strategy I||ARCIX||10.17%||The fund invests in several commodities that were all up this week.|
|Taxable Bonds||Emerging-Markets Taxable||4.50%||Goldman Sachs Local Emerg Mkts Dbt Instl||GIMDX||6.73%||With longer-term bond yields gaining this week, emerging markets debt was set to gain.|
|Municipal Bonds||High Yield Municipal Bonds||0.29%||Oppenheimer Rochester® High Yld Muni Y||ORNYX||0.81%||With yields increasing this week, high-yield bonds managed to register a small gain.|
Performance Snapshot: Top Fund
: Leland Thomson Reuters Vntr Cptl Idx A (LDVAX).
The fund’s largest holding is in MasterCard (NYSE:MA), which is up over 7.4% for 2018.
The following table provides the top-performing mutual funds on a YTD basis as of January 12, 2018. Only those funds that are rated five stars by Morningstar and that generated YTD returns greater than or equal to that achieved by the S&P 500 are included.
|Name||Ticker||Category||YTD %||Net Expense Ratio||% of Assets in Top 10 Holdings||Total Assets $ (Millions)||Top Sector Invested|
|Leland Thomson Reuters Vntr Cptl Idx A||LDVAX||Large Blend||9.96%||1.99%||26.5%||$ 21||Technology|
|PRIMECAP Odyssey Aggressive Growth||POAGX||Mid Cap Growth Equities||8.05%||0.64%||29.4%||$ 9,560||Technology|
|Oppenheimer Global Opportunities I||OGIIX||Global Equities||7.69%||0.73%||30.0%||$ 7,100||Technology|
|PRIMECAP Odyssey Growth||POGRX||Large Growth||7.19%||0.66%||27.1%||$ 10,600||Technology|
|Vanguard Energy Index Admiral||VENAX||Energy Equities||7.18%||0.10%||64.8%||$ 4,700||Energy|
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